Canadian in-house legal departments are taking on increased organizational risk, heavier workloads, and wider non-legal responsibilities while budgets tighten, according to the “2026 Canadian In-House Counsel Report” published by CBA In-House Lawyers and Mondaq.
In-house counsel at all levels have flagged workload volume and management as their biggest challenge, followed by regulatory change and artificial intelligence compliance/implementation. While supporting business growth has become in-house counsels’ main priority, staff and their wellbeing are inadequately supported.
Legal teams are not being given additional time, staff, or support to handle the uptick in responsibilities. Just 33 percent of legal departments anticipate an increase in budget, while 17 percent expected budget cuts. According to the report, it is the highest rate of projected budget decline in the annual surveys to date.
Only 26 percent of public companies expect a budget increase compared to 30 percent in 2025. In-house legal departments are allocating a significant chunk of the budget for technology – the biggest in-house spend growth area for a third consecutive year per 49 percent of respondents.
Moreover, legal teams are grappling with rapid technology adoption and increased business uncertainty. Fifty-one per cent of respondents experienced increased work-related stress and anxiety; 53 percent of these work in public companies. Among those working in government organizations, however, stress and anxiety levels soared by nearly a fifth to 47 percent.
Additionally, just 48 percent of Canadian legal departments say their organizations are prioritizing equality, diversity, and inclusion – a 13 percentage-point drop from the previous year. Fifty-five percent of chief legal officers and general counsel reported that ED&I was not their priority this year compared to 44 percent from the previous year.
Only 52 percent of large organizations saw ED&I as a priority – last year, the figure was 75 percent. By contrast, 49 percent of small companies prioritized it – up from last year’s 44 percent.
The data are indicative of a structural change in the definition, resourcing, and valuing of in-house legal work, per the report.
The “2026 Canadian In-House Counsel Report” obtained input from just under 500 respondents. The fifth annual Canadian In-House Counsel Survey was opened in October 2025 and closed on December 2025.